Allow comparative advertising: Cell C

The mobile operator wants to be able to compare its products and prices directly with its rivals in its advertising campaigns. By Duncan McLeod.

Jose Dos Santos

Jose Dos Santos

Cell C wants to launch comparative advertising campaigns targeted at its bigger rivals, MTN and Vodacom, and is frustrated that it is prohibited from doing so under South African law.

The network operator’s chief commercial officer, Jose Dos Santos, says the ban on comparative advertising is bad for consumers and for the economy. He was speaking at the launch of a new advertising campaign for Cell C at its Sandton head office on Monday.

“It’s a real shame we can’t do comparative advertising in South Africa,” Dos Santos says. “The kind of ad we are producing should be: ‘[Other operators] have ripped off consumers for the past 20 years, this is what you’re paying [them]. You now have an option, which is 99c/minute.’ But you can’t say that. The agency and marketing team had to spend many hours trying to figure out how to get this message across without contravening South African laws.”

He says that comparative advertising in the US works well and helps grease the wheels of that economy.

Dos Santos says consumers have a right to the information that Cell C wants to use in its advertising campaigns but can’t because of legislation.

He says the operator would like to run ads with the call centre numbers for Vodacom and MTN, challenging consumers to call them and demand to know how much they’re paying for their calls.

Advertising guru Chris Moerdyk agrees with Dos Santos and says the fact that comparative advertising is not allowed is a “tragedy”.

“The fact that we don’t have direct comparative advertising is literally not allowing the consumer to make a proper choice and it’s anti-consumer,” he says. “Cell C is absolutely right. There is no question: it should be allowed.”

Moerdyk explains that it’s the Trade Marks Act which bans it rather than any agreement between advertisers. The act prohibits companies from using competitors’ trade marks in their advertising, or anywhere else for that matter.

“I cannot speak strongly enough about how this puts consumers at an enormous disadvantage, and it’s been going on for decades. It’s an absolute tragedy.”  — (c) 2013 NewsCentral Media

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  • http://www.facebook.com/samuelkock Samuel Kock

    I quite like having a ban on Comparative advertising. In the US, where comparative advertising is the norm, all the advertisements are just the one company bashing the competition, anyone can write such an ad. The ban on comparative advertising makes for far more creative ads, like a lot of the Nando’s print and television ads.

  • http://twitter.com/scrookson Sean Crookson

    The former Vodacom boss, Cell C CEO Alan Knott-Craig, is now the Cell-C boss, and he is suddenly all reformed …

    Here’s a quote from management:

    “‘[Other operators] have ripped off consumers for the past 20 years, this is what you’re paying [them].”

    So who was doing the ripping exactly? Mr. Knott-Craig??

    Also he obviously has insight into Vodacom and could cause some damage. so it wouldn’t be fair. Life is stressful enough without two rival companies tearing into each other every evening on the TV.

  • Greg Mahlknecht

    Agreed – it also changes the types of products that are sold – in the US, there’s so many hidden bait-and-switch deals going on – when CellC started their 99c thing, it was really nice and simple and I might have supported them, but they’ve got enough special cases and special offers and add-ons and free things under certain conditions going now, that they’re just the same as everyone else. Pity, really. It’d be nice to have a no-BS provider.

  • Marulaneng

    there are prons and cons to anything in life but i have to agree with Cell C on this one. customers compare product features & related pricing of products & services accross operators anyway. this however takes time so why not allow operators to do it on behalf of end-users?

    the danger to comparative advertising is that operators like any other private businessess are inherently not honest i.e. will compare only what suit them and not necessarily beneficial to end-users

  • http://twitter.com/TopEditorInt TopEditor Internatio

    Uh oh! Cell C should be careful, very careful about what it wishes for – it may get it! And based on FOUR MONTHS of being unable to match up to either Vodacom or MTN in data transmissions through Morningside, Sunninghil, Woodmead and Paulshof Cell C has failed to measure up again and again and again. Seems Knott-Craig’s babies are just not up to the task.

  • Greg Mahlknecht

    You make a good point. If CellC can do comparative advertising on price, the other networks can do comparative advertising on coverage, speeds, etc. This will get ugly fast.

  • Cross

    Lets not forget that Jose De Santos was also one of those doing the riping off for 20 years along with Knott-Craig!!!! Now they want to do this because the only thing they have to offer is price…. pitty they didnt think about this20 years ago!!!

  • B The Nerd

    And we can commpare broadband offerings on the data side. I say lets also compare what we pay for voice. We know what Telkom and Neotel charges, why not the mobile operators?

  • Chris

    Well if Cell-C wants to have ads about the 99cents and compare it to the other operators and say that they are better because of it, let them. But, any of the operators can shoot back with having way better coverage for instance. I experience dropped calls on a daily basis with CellC where I never had so many problems with MTN. They should be very careful what they wish for!
    However, I do agree that we need this sort of ads..

  • http://www.InTheCube.co.za/ InTheCube.co.za

    I have to agree, as millions of uninformed citizens, especially lower income prepaid customers, are still paying Vodacom and MTN R2 per MB of data and R2.75 per minute for voice calls. Cell C sells data at R0.15 per MB and voice minutes at 99c, on both prepaid and contract, with nothing special required, and no hoops to jump through. Vodacom and MTN are fleecing customers, with smoke and mirrors tactics, hiding their high prices behind scams like Mahala Thursdays, MTN Zone, on-network only promos, and a slew of complex and complicated tariff structures. This needs to be exposed, and comparative advertising is the perfect way to do this. Nobody else is going to expose this, except a competitor trying to win more customers with better offers.

  • Mbazo Mabuza

    Very dissapointed with the editors of Techcentral, Mybroadband etc. I mean these guys were around when Cell c entered the market and they must have witnessed the massicve rise in interconnect rates at that time. To me that was the one move that messed up the telecoms industry in the country. Question is who was presiding as CEO at Vodacom at that time ?. Your guess is right, it was non other than the Alan Knott Craig Snr. Today he is Cell C CEO and he is trying to push agendas that will positvely impact on his retirement package a few years from now. MTN and Vodacom must not sit back, they must meet fire with fire. I use Vodacom “For you” and “MTN Zone”. The phone i use “Ericcson” shows the discounts before i make a call so sometimes on MTN i can pay for R50 cents for a Call, and same applies with Vodacom. So i dont see the fuss with the 99c. The only direction i see this thing going is Cell C getting taken-over soon…………

  • marilise

    I am with Vodacom for 10years and are happy, I get great service and when I go for an upgrade it takes 15min. My husband was with cell c for the past 4year and we have been struggling with cell c for the pas year to deduct the right top up amount every month. He cancelled his contract with cell c and guess what they deduct R1034 from his account and said he ows them money for cancellation after he paid the cancellation in November last year. What do them tell you you have toe wait 7-14working day before the money is paid back but they didn’t had any permission to take money out of our account, they don’t phone you nothing, they just take. Cell c admin office is worse that a mess. We will never do business with cell c every no matter what and we will make sure non of our friends of family either. They must concentrate on their service and getting their admin office on standard before worrying about advertising. No service means no customers.

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